KUALA LUMPUR: The government is pleased to announce the maturity of its two-year Sukuk Prihatin, which was launched on Sept 22, 2020, and fully redeemed today.

According to Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, the Sukuk Prihatin issuance, which had to be upsized by RM166.42 million due to overwhelming response, was subscribed by 2,436 individuals and corporate holders with a final total subscription value of RM666.42 million.

"Proceeds from the issuance were channelled to the COVID-19 Fund to finance, among others, micro-credit loans under Bank Simpanan Nasional and TEKUN Nasional, special assistance for students of higher education institutions, e-Commerce campaigns for SMEs and micro enterprises as well as public healthcare expenses in addressing the pandemic," he said in a statement today.

Tengku Zafrul said the government would like to convey its appreciation to those who had subscribed to the sukuk, particularly to the 95 Sukuk Prihatin holders who opted to contribute their principal subscription amount to the government.

"In upholding the spirit of Keluarga Malaysia, the government will channel the entire donated contribution totalling RM2.6 million to Akaun Amanah Bencana which will support, among others, the repair of damaged infrastructure and public facilities and financial relief for victims of natural disasters.

"The government's highest appreciation extends not just to all sukuk holders, but also other members of Keluarga Malaysia who had rallied together to support the nation weather the public health and economic storm during the height of the pandemic," he added.

Sukuk Prihatin was established in response to various requests from corporates and individuals to contribute to the country's recovery efforts during the COVID-19 pandemic.

It was well recognised for its innovative features, combining digital, retail as well as charitable elements and won multiple awards including Overall Deal of the Year 2020, Most Innovative Deal of the Year 2020 and Malaysia Deal of the Year 2020 by Islamic Finance News.

It was also recognised by Alpha Southeast Asia as Best Digital Sukuk at the 14th Annual Best Deal/Solution Awards 2020.

Maybank was the primary distribution bank for the Sukuk Prihatin which was made accessible via the digital banking platform of 27 banks in Malaysia, enabling retail investors to subscribe from as little as RM500 to support the nation's recovery effort.

-- BERNAMA